Bond fraud

[Joep]

Currently your new setup subsidiary companies get a bond credit-rating of "B" even if the the parent company has a bad rating of "D".

This makes it possible to easily setup a fraud and get access an infinite amount of money. (You would do so by Issuing bonds in the subsidiary at a rating of "B", immidiatly merge the subsidiary, and buy the bonds immediately back at the rating of "D" at a price of sometimes 15%).

That's why I would suggest to set the bond credit of a subsidiary at a level depending of the parent company.

[megapolis]

I double this. With an example from the real world. A couple of years ago I asked my bank what is their credit rating. And their answer was XXX (I don't know exactly but it does not matter). When I asked why so low, their answer was that it cannot be higher than our country rating by definition. In this case country acts as a parent company

[David]

Hi Joep, I would recommend that you set up a poll for your suggestion.

[David]

Update: This suggestion has been implemented and will be available in the upcoming version 6.2.00.

[David]

Update: this suggestion has been implemented in the latest version 6.2.00. You may download it from http://www.capitalism2.com/forum/viewto ... =52&t=7160

[gbveltman]

Hello,

The only problem I see with this implementation is that I like using the default mother company purely as a holding company, creating subsidiaries for different business lines. When the mother company has no operating firms and produces no revenue/profits from operations, the rating is never higher than "B", even if they receive large amounts of dividends or returns. So even if subsidiaries are extremely succesful, they are capped at B, making financing less attractive than it could be. I also can't use mother company to finance subsidiaries as they are capped at "B".

[David]

Hello,

The only problem I see with this implementation is that I like using the default mother company purely as a holding company, creating subsidiaries for different business lines. When the mother company has no operating firms and produces no revenue/profits from operations, the rating is never higher than "B", even if they receive large amounts of dividends or returns. So even if subsidiaries are extremely succesful, they are capped at B, making financing less attractive than it could be. I also can't use mother company to finance subsidiaries as they are capped at "B".

I would recommend that you create a poll for this, stating how you would like this to be changed. The dev team may make modification if the poll result clearly indicates that the majority of the users agree with your suggested change. You can see examples of polls in the forum.

[standardplayer]

Hello,

The only problem I see with this implementation is that I like using the default mother company purely as a holding company, creating subsidiaries for different business lines. When the mother company has no operating firms and produces no revenue/profits from operations, the rating is never higher than "B", even if they receive large amounts of dividends or returns. So even if subsidiaries are extremely succesful, they are capped at B, making financing less attractive than it could be. I also can't use mother company to finance subsidiaries as they are capped at "B".

I would recommend that you create a poll for this, stating how you would like this to be changed. The dev team may make modification if the poll result clearly indicates that the majority of the users agree with your suggested change. You can see examples of polls in the forum.

See the following post about holding company credit rating:
https://www.capitalism2.com/forum/viewt ... =52&t=7435